The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Ares Capital (ARCC) one of those stocks right now? By taking a look at the stock’s year-to-date performance in comparison to its Finance peers, we might be able to answer that question.
Ares Capital is a member of the Finance sector. This group includes 856 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ARCC is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ARCC’s full-year earnings has moved 3.62% higher within the past quarter. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the most recent data, ARCC has returned 19.19% so far this year. Meanwhile, stocks in the Finance group have gained about 12.56% on average. This means that Ares Capital is performing better than its sector in terms of year-to-date returns.
To break things down more, ARCC belongs to the Financial – SBIC & Commercial Industry industry, a group that includes 37 individual companies and currently sits at #96 in the Zacks Industry Rank. This group has gained an average of 21.91% so far this year, so ARCC is slightly underperforming its industry in this area.
Investors with an interest in Finance stocks should continue to track ARCC. The stock will be looking to continue its solid performance.
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